Monty Tayloe

The FCC approved Gray Television’s $2.7 billion purchase of 17 TV stations from Meredith, said a letter from the Media Bureau's Video Division posted Friday. “The Transaction serves the public interest, convenience, and necessity.” Approval was expected and Gray executives recently said it would come soon (see 2111050063). The deal involves one overlapping market that Gray addressed by divesting WJRT-TV Flint, Michigan, to Allen Media (see 2107150003), and drew no formal objections. The transaction will make Gray the No. 2 U.S. broadcaster by revenue, and give it an audience reach of 25% of households, well under the 39% cap. Two informal objections, including a late-filed one from a Las Vegas-area broadcast antenna installer who said Meredith had a policy against carrying ads that encourage cord cutting, were rejected. “We cannot conclude, as Mr. Antenna suggests, that such a policy exists, or ever existed, at Gray or Meredith,” staff said: The deal would create public interest benefits for viewers because of Gray’s Washington bureau and the advantages of greater scale. Once the sale is consummated, Meredith will separate into two companies, one consisting of the broadcast properties and owned by Gray, and the other -- Meredith’s print, content and digital businesses -- will become a subsidiary of Dotdash Media (see 2111100051). The deal is expected to close Dec.1, Meredith has said.

Broadcasters should never be partisan, should focus on “the counterpunch” and shouldn't be afraid to negotiate, said outgoing NAB CEO Gordon Smith in a livestreamed “state of the industry” address before NAB’s Marconi Awards presentation Wednesday. Smith steps down at year-end and will be replaced by current NAB Chief Operating Officer Curtis LeGeyt (see 2104070045). The speech had been planned for the since-canceled NAB Show 2021. Smith has headed NAB for 12 years, after a two-term stint in the U.S. Senate. LeGeyt is “the right person at the right time for this job,” Smith said Wednesday. The outgoing CEO praised NAB’s role in securing COVID-19 pandemic relief for broadcasters and “standing up to the tech giants,” and said broadcasting has never been more important as an institution than over the past 20 months. Smith advised advocates for broadcasting to prioritize issues with practical consequences, hire “the best, not the most,” and not “punch” until they have assessed the likely response from their opponent. “Some things have to ripen, and you want to calibrate your punch when it’s most impactful,” Smith said. He will continue to work for NAB as an adviser starting in January.

The FCC unanimously approved a Further NPRM seeking comment on proposals from NAB’s petition on ATSC 3.0 multicasting. The FNPRM released Friday tentatively concludes that the agency should let 3.0 stations license multicast streams that are hosted by other stations (see 2110280064). It proposes allowing stations broadcasting in 3.0 on their own channels to license ATSC 1.0 multicast streams hosted by other stations without simulcasting that stream in 3.0 themselves. Licensing multicast streams would make clear what station is responsible for FCC violations on a given stream, the FNPRM said. It would also address concerns about noncommercial educational stations hosting the streams of commercial broadcasters, the FNPRM said. FCC rules prohibit airing broadcast ads over NCE spectrum. The proposals could help address broadcaster capacity concerns “by facilitating the participation of stations uncomfortable with a purely contractual approach and making the participation of NCE stations legally permissible,” the FNPRM said. The FCC declined to seek comment on an NAB proposal for broadcasters to host multicast streams even without broadcasting in 3.0 but asked about allowing 3.0 broadcasters to host their primary and multicast streams on different stations to prevent service loss. “Is there any reason to treat ‘simulcast’ multicast streams differently than ‘simulcast’ primary streams?” the FCC asked. The FNPRM seeks comment on how to prevent broadcasters from taking advantage of the rule changes “to aggregate programming or broadcast spectrum on multiple stations in a market in a manner that would not otherwise be possible or permitted.”

A drop in automotive advertising caused by supply chain woes remains a drag on TV and radio advertising, according to Q3 reports delivered in calls last week. Last year's revenue was strongly affected by the COVID-19 pandemic’s slowdown on commercials but buoyed by political spots from the presidential election, several companies noted.

The FCC’s new Communications Equity and Diversity Council will meet more often and act more quickly than preceding diversity committees, said Chair Heather Gate at the CEDC's first virtual meeting. Previous diversity committees voted on most recommendations at the end of their terms, but the new group should aim at being “part of the solution as things are happening right now," said Gate, the Connected Nation vice president-digital inclusion: "Waiting until 2023 to drop all of our recommendations, we may miss a window that is open right now.”

The FCC is planning to allow employees to return to working at the agency’s headquarters starting Dec.1, according to a memo emailed to FCC staff by the agency’s HR department Monday and obtained by Communications Daily. The agency will shift from “mandatory telework” to “maximum telework,” allowing employees to come in if they choose. “We want to assure everyone that you should not be hesitant to take advantage of the maximum telework flexibility, doing so will not be seen in a negative light, and employees should do what they think is best given their individual circumstances,” said the memo.

The FCC’s first window for full-power FM noncommercial educational station construction permit applications since 2007 opens Tuesday, and anecdotal evidence suggests high interest. Three people involved with assisting with NCE applications told us they are turning away would-be applicants. Broadcast attorney Dan Alpert said 1,500 to 2,000 applications are expected. Each entity has a 10-application limit.

No changes have been proposed internally to a draft FCC order clarifying ATSC 3.0 multicast rules, though the item hasn't been OK'd by all commissioners, said agency and industry officials in recent interviews. Broadcasters say approving the item -- which stems from an NAB petition for clarification -- will speed the transition to 3.0. “Anything we can do to expedite 3.0 deployment will be for the benefit of viewers and platform users,” said One Media Executive Vice President-Strategic and Legal Affairs Jerald Fritz.

An order updating the DTV table of allotments was unanimously approved Friday and deleted from the agenda for Tuesday’s FCC commissioners’ meeting, said a deletion notice listed in Monday's Daily Digest. The order was considered noncontroversial at the FCC and among broadcasters. “It’s really just housekeeping,” said Fletcher Heald broadcast attorney Matthew McCormick in an interview. The order would adjust the rules for the table of allotments to incorporate changes to the way TV channels are organized stemming from the broadcast incentive auction, the repacking and the lifting of a freeze on changes in November. The order also deletes rules that have become obsolete, according to the final version. McCormick said the changes are unlikely to have much effect on stations seeking to adjust their channels.

Collecting regulatory fees from tech companies and users of unlicensed spectrum would be a huge task, outside FCC authority, and hamper broadband adoption, said trade associations and others in comments posted to docket 21-190 by Thursday’s deadline. Comments about establishing a small satellite regulatory fee also had multiple calls in the commercial space sector for creating new fee categories for other types of space operations.